Interesting story yesterday about some of the industrial relations problems that can occur when businesses outsource work to an offshore supplier.

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In California 18 IT workers are suing former employer Molina Healthcare Inc, its CIO and an IT supplier, alleging that the company broke state law when it replaced them with Indian workers from outsourced service provider Cognizant.

The US H1-B visa, which allows US employers to temporarily employ foreign workers in specialty occupations, was used in this case.

The workers that were eventually laid off say for several years the US workers were marginalised as the IT department became dominated by Indian nationals.

US IT professionals are not alone in their suffering. UK IT professionals in their droves have lost their jobs as part of an IT contract that sees their roles sent overseas.

I am constantly writing about the problems IT professionals face as a result of businesses bringing offshore workers to the UK using the controversial Intra Company Transfer scheme to provide businesses with low cost IT staff.

Well the US equivalent, known as the H1-B visa, is equally problematic.

The New York Times has a story about it which has serious echoes of the UK. I post the article because it is very clear in describing the problem. The similarities to the UK are frightening.

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I have read more detailed accounts of this story and what shocked me was the obvious racism of Indiian managers. There is even an HR manager claiming Indian managers from Molina and Cognizant prefered to use Indian staff. Their response seems to be that Indian workers are 'better'. This generalization is clearly racist. I am worried about this Indian supremacist view which reeks of all the worst racism of the US (and UK) 50 years ago.

I have read more detailed accounts of this story and what shocked me was the obvious racism of Indiian managers. There is even an HR manager claiming Indian managers from Molina and Cognizant prefered to use Indian staff. Their response seems to be that Indian workers are 'better'. This generalization is clearly racist. I am worried about this Indian supremacist view which reeks of all the worst racism of the US (and UK) 50 years ago.